there are still bills to pay for ppi. should worry about in terms of extraordinary costs? ppi is the main one. that has been ticking overfor a long time. what we had last year, a new deadline was introduced of august 29 and that has prompted more people to claim. there was a prompted more people to claim. there wasa campaign prompted more people to claim. there was a campaign fronted by arnold schwarzenegger, run by the sca, which has also encouraged people to claim more and lloyds has had to put more money aside. as we move towards the claims deadline in august of 2019 they will probably tweak back a little bit. the other thing is the uk economy. it is so plugged in that any shocks to the uk will be keenly felt by lloyds. things are plain sailing at the moment because we have record levels of employment and loans are not going bad. thank you for that. this is the boss of lloyds. he told the today programme on radio 4 that lloyds came through with a strong recovery over the last few years will do it pointed out his base s

here's core ppi. not out of line really since the last number was negative we're kind of saying it's medium to just a little bit hot the empire state manufacturing index, the prices pay component, 48.6 plus 12 points, the hottest in five years. go onto the philly fed prices paid index, 45 also up a dozen points hot in six years hottest of all, core cpi hottest number we got, .349. the thermometer though, it looks a little different if you look at it year over year this is a way to think about the number year over year the core cpi is hotter than the -- core ppi is hotter than the core cpi take a look. what we're going to talk about is the suddenly relevant inflation data tracker which nobody cared about, what, three weeks ago? and now all of a sudden that's what everybody wants to know there's the ppi you can see the cpi is very stable just a little bit up where the ppi is is where the pressure is. now we'll go to the suddenly relevant inflation tracker you can see all the points there if we can get t

this ppi number, wages are accelerating if companies can pass through the price.hnology, can you pass through pricing today? >> yeah. if you can pass through pricing, i would argue, that's fought a negative if you run particularly a manufacturing company? to me that lab big best. >> especially we had schwarzman on, talking about his part. >> pages will keep accelerating. as long as you keep your margins sincere the equity market can do really well. it will keep growing >> that's why i think the debate in the stockmarket, how is the growth dried i divide up between workers, shareholders, all the rest of it that's the question we have right now in high rates and inflation? >> amid yesterday's rally, you seen the dollar hit a 15-month low against the yen, fears about u.s. borrowing, $20 trillion in debt >> the weakening dollar has been loose global financial conditions people have been looking on the bright side of that. i think the stockmarket is taking that message away from it whether that's you know rose colored glasses, i don't know. >> that would act you, yeah,

futures pointing to rally open of trading dagen mcdowell we focused on inflation yesterday with cpi now ppiaction, to this number. dagen: you don't see markets -- shaken certainly stock market by what is going on in the inflation picture, yesterday, different story, ultimately, stocks rallied, were able to ignore the hotter inflation that we saw in consumer prices but you did see bonds, yields across all treasurer for the most part hitting multi-year highs at least testing levels 3.16% on 30 year bond yesterday, so again, we talk about stocks but you have to be careful if you are long treasurys in this environment because you are suffering principal losses on some securities, if you are not careful. . i think that is story, if interest rates get significantly higher going to force federal reserve hand to hike interest rates more than expected, and that will ultimately be bad for stocks. >> i would love to see 10 year right now too in reaction to this but great to see at the the market regards to this number later today going to get jobless claims we've got industrial production, industrial

the more important thing is to look at the ppi numbers. pricing power for companies in china. the ppi, though it has decelerated, is still positive. that is important. dave: 4.3% was the latest read i believe for ppi. there are other metrics across the region. since theask you, selloffs, volumes have not come back. is that something i should be worried about? khiem: as far as hong kong is concerned? dave: and to a lesser extent, the u.s. -- volumes are not back to average. europe, as well? after the chinese new especially ins, the case of hong kong, china, are still assessing the situation before they reinvest. it is showing deceleration, it is still growing at a synchronized pace. i think that is important. i am wondering. we talk about the selloff, chinese investors selling off their investments in hong kong. we saw $490 million worth. is it profit-making or a deeper issue? khiem: we do not think it is a deeper issue because i think mainland chinese investors are diversifying their portfolio away from local market into offshore markets.

we're watching potential pricing issues we have cpi tomorrow, ppi the next day all of this, of coursed affect your portfolio and your interest rate strategy tune in tethbrk. 'lta about it. jake! today, you're recognizing two promotions. hey kids i'm home. what do you want for dinner? hers to manager, and yours to grownup. with blue apron, any night is a chance to see what cooking can do. >>> how much is really at stake today for apple shareholders at the meeting? we're live in coopertino as tim cook speaks. plus, has under armour bottomed? we'll find out where our traders stand today. and the money manager who warned months ago that short toll vivoy trade could come crashing down nancy davis is joining us live at noon. we'll see new ten minutes or so. >> all right scott, it will be interesting to hear what they has to say. let's get out to the cme group and rick santelli with "the santelli exchange" and i believe some charts. >> yes, exactly. i'll tell what you i like charts they make everything simple. what isn't going to be simple is how treasury yields especially the long end, you

this is the ppi building in allentown. fog up in this area and still noon the ground and that will help create the fog. this is wilmington you can see the fog already starting to develop. the radar shows showers up to the north, not much. farther to the north there is plenty of rain. all this headed up to the north and warm air down to our south, that's what's coming up here. we have a southerly wind up to 48 degrees in philadelphia, 51, atlantic city international and now much warmer air farther to the south. that is going to start coming in. you will see the temperatures climbing. warmer by 7:00 a.m. tomorrow than it is right now. there will also be fog. more on the record high temperatures and how high and how long it will last coming up. >>> today's suspected school shooter, nikolas cruz, faced a judge. cruz charged with 17 counts of murder, sat at the defense table with his head down during the brief hearing and did not talk. meanwhile, members of the florida senate say they're preparing sweeping gun legislation. it i

ppi data out from japan. we are looking ahead to taiwan gdp. out of india as well with new credit numbers out of china. that tells it all. the korean won is catching a bit. on forlooking at risk tuesday. earningst goes back to for japan. how is this season looking? earnings for japan. how is this season looking? david: finally, we can talk about earnings, you know? at the moment, this is how things look for the nikkei index. ea . the two to out of five companies on the index. we have a few more coming up later on. as you can see, overwhelming majority have reported a beat on top lines and when you look at earnings, the price is also coming in slightly less in the majority is reporting earnings. , japan is this route much cheaper. we are looking at -- we came from about just under 20 times forward earnings, not trading closer to 17, almost like we had an upgrade cycle. before all of this happened, we were talking about japan being one of the most, how'd do you put this, strongest in terms of the earnings season. that will make it more palata

one hundred ppi or so from the book starting february eighteenth. players play. this is the day of the news live from berlin a deadly weekend for turkish soldiers as seven die in operations in syria but it's civilians in our friend who bear the brunt of the insult of turkey aims its firepower act heard this militias there look at the bases from our correspondents. we might as a mess shoot down a bush or a plane and let the province the pilots parachute stand but it's killed in fighting on the ground. and we take a look at that has been the big auction as the race for us.

the core cpi running about 1.7%, 1.8% the core ppi is hotter over time on a year-over-year basis so tyler, we'll keep watching this stuff. put it into the thermometer and give people an idea of where we are relative to past inflation as well as where we think it's going from here. >> i like that thermometer, steve, thank you very much. >>> what a difference the week makes, the dow and s&p have recovered about 60% of the points they lost at the peak of that early february selloff. the peak being the -- the trough being february 9 the nasdaq has recovered about 75% of its point loss and all three are headed, as we mentioned, for a fifth straight day of gains if the current trend continues. is the rally back on track let's bring in the chief investment officer with janney, montgomery, and scott. all three of them. and michael jones, chief investment and chairman with riverfront investment group. michael, i'll start with you you say an important all-clear signal has been passed in just the past 24 hours. what is it and what does it tell you? >> i think yesterday was the critical signal for eq

rick, what are you working on this morning >> you know, just trying to factor in how today's ppi in many ways every bit as hot as yesterday's cpi but cpi seemed to have broken the veil with response to market response. note yields are up two basis points and that makes sense with the march meeting and the fed and back to back rather warm ppi/cpi data points but the 10-year at 290 as you see on the next chart, it is unchanged. we have been up to a 294 yield and as jim referred to earlier, is it that we're ignoring tens or have we factored in the realities of the situation and vas late between what's moving it and how it affects the equity markets. remember, what happened with the equity markets and reversal of some of the trades that were triggered by the one dot in the solar universe that so many issues of the portfolio to volatility, maybe that's behind us but one thing that sntd behind us, the ongoing firmness and very measured pace in many ways outside much a few sessions of 2018, it's been orderly. we go all the way back here on bunds to september 2015. they are getting close to 80 b

we'll learn a lot about the market and how they feel with inflation with the ppi and cpi reports. >> there hasn't been that much excitement about those reports when talking about this kind of change of mind he's had about the nature of the rally. cited the same two things, inflation, the size of the deficits, is the reason he doesn't think the market will have that kind of final melt-up phase, for lack of a better term so, why do you feel differently? >> look, i'm never going to say i can't be wrong i can be absolutely wrong. ray is a hard guy to go against. he's been right for a long period of time at the end of the day, there are too many disinflationary forces. we have secular ones from the technological advance that's going on every day out of silicon valley and everywhere else we have demographics that weigh on inflation we've got a fed that's tightening that's disinflationary we have deregulation, which supports more competition, which is deflationary or disinflationary. i think corporate tax reform is disinflationary because consumers can feel some of that benefit through lowe

that in this next chart we have when we look at them, you can see the stable core cpi with the rising ppi look at several significant dates when it comes to inflation or the things on the markets. our new fed chairman, jerome powell, gives congressional testimony february 28th. get his ideas about inflation and the overall economy. march 1st, the pce, along with some manufacturing surveys with price data in. this big one here, march 9th has the wage data, jobs number and wage data that ended up spooking the market, and cpi and ppi, put those on your calendar because those are important events for the market, kelly. >> major ones. good stuff let's bring in larry kudlow and sarot and our panel. larry, how hot do you think inflation is >> i want to break some news on the show i basically agree with steve liesman. >> i thought you might. >> i basically agree there is a whiff of inflation. it's a small one i wouldn't get hysterical. i think he's right i'll go to the core of it. >> what are you agreeing with, there's a small whiff or not that much of it? >> both. a small whiff. overall, it's no

let's talk about barclays bank, various issues, ppi still bothering it, the payment protection scandala similar story which is the actual bank itself is now doing very well and you saw a 10% rise in underlying profit, £3.5 billion made last year so the company is doing well and yet they still have these ongoing fines from things they did in the past, the sins of the past, so to speak, so you have this drag which has put pressure on their share price, and even now it's down 10% over the last 12 months but today's news was taken pretty well because may leave the underlying bank itself, if you look forward , underlying bank itself, if you look forward, things are going well and profits are up so the stock was up at 4%. profits are up so the stock was up at 496. they also pledging to restore their dividend pay—out. at 496. they also pledging to restore their dividend pay-out. that will do their dividend pay-out. that will do the share price wonders. that's another indication of the health of the company. once you get back to dividend growth, and potential buy—backs, that's a good indicatio

we need to be satisfied with a very high ppi number.to look at the trends in 2018 as we look at china's imports and exports. maybe there is seasonality, but you are concerned about the weaker growth in exports. could this be a signal about the global economy? what do you think is happening now? we have had other issues for shipping. if you look at them, they have been pulling back a bit. some of theleak -- leading indicators that things are starting to change. mr. shen jianguang: the european economy is very strong. we may see even higher growth on the u.s. side, but probably slower in europe. numberthe strong export may not be sustainable. week exportthis data, the renminbi depreciated. it is a reaction to fear. enda: is that is your feeling, that the currency could weaken further? mr. shen jianguang: that is right. february data will be much weaker. that is the renminbi sentiment. yvonne: is it because of what we see in the u.s. and europe? it seems the trump administration is trying to talk down a weaker dollar. -- are we in a bit of

n big one—off items, whether it is loan repayments, conduct and litigation charges for things like pping these banks billions, i figure was about £6 billion in totalfor barclays in the year just £6 billion in totalfor barclays in the yearjust gone, about 25 billion in total in the last five years. if they can keep their nose clean, keep down and cut down on the loan repayments underlying there is a widely profitable bank looking to get out. the question is can they keep those costs down, particularly on the legal side? despite that £127 million hit on the collapse of carillion, i think of the five lenders barclays was the least exposed, so we will see more of the ramifications as more banks bring out their results. but looking at ba rclays out their results. but looking at barclays specifically, it is the top prize on the footsie today. to what degree is that due to this announcement that they will increase their dividend payments?” announcement that they will increase their dividend payments? i think thatis their dividend payments? i think that is a huge signal of confidence and that

i have been focused on this correlation of china ppi with the u.s.t based inflation expectations, correlations soared after december 2016. that correlation does not have to stay super hot forever, but china ppi print something coming down a lot. i think that is something to take into consideration for we get too excited about inflation exploding. alix: the other thing we are looking at is earnings, holding up, supporting equity prices. megan, you are looking at a chart looking at equities versus earnings. in that respect, we wind up seeing earnings rolling over a little bit coming off of the highs we have seen recently while equities grind higher. do you see a negative disconnect there? megan: that relationship seems to be breaking down, as well as liquidity being pumped into the system by central banks. that suggest this could be sentiment driven. soft data look fantastic in the u.s., but the hard data is not really keeping up. are weaning we ourselves all the central bank stimulus, even as they pulled ,ack, they have primed the pump and companies c

nejra: how much focus would there be on the ppi scrutiny? the middle of next year. there's a big advertising campaign fronted by arnold schwarzenegger just to make sure that anyone who was mis-sold these financial products may be compensated from it. this may be the last time we get hundreds of millions, which has been a constant theme the last decade. i forget the actual figure, but it is far north of 10 billion pounds for each of the banks involved in the scandal. it is interesting to see how much more that takes off earnings. nejra: we look forward to reading your story. thank you to bloomberg banking reporter stephen marsh. you don't want to miss our interviews with barclays ceo jes staley thursday on bloomberg television. coming up, it is the first e-commerce transaction of its kind. how nike customers bought on snapchat. this is bloomberg. ♪ nejra: live from london, i nejra cehic. this is the european close on "bloomberg markets." the mba wrapped up its annual all-star weekend in l.a. saturday was the 30th anniversary of michael jordan

then on this week's economic agenda on wednesday, january retail says, cpi thursday, jobless claims, ppi and philly survey and home production builder survey. friday, housing starts, consumer sentiment. as earnings two dow components, 57 companies in the s&p 500 they're reporting. that list includes pepsico, under armor, metlife, cisco systems, marriott, heinz, kraft, and coca-cola. the market may key off fundamental news as opposed to speculation. though we got earnings numbers as well. and that's eye its own adventure. >> these are stralers. we're done with earnings >> joe's closing the books >> we're done with earnings. >>> looks like eququalcomm and broadcom are planning a valentine's day meeting. to talk about broadcom's $121 million acquisition offer. "the wall street journal" reports the company has secured $100 billion of debt financing for that hostile bid also enlisted the help of two private equity firms the ceo of broadcom will be on "squawk on the street" today >>> frld automatic toy plaker planning to raise production of the expedition and the lincoln navigator by a quarter

eastern along with january ppi and the monthly philly fed survey.t 9:15 a.m., industrial production look for results from cbs and shake shack after the closing bell. >>> cisco systems posting a net loss in the second quarter due to an $11 billion tax related charge but excluding those items they reported their first quarterly revenue rise in two years. cisco plans to raise its buyback program by $25 billion and repate yacrepa repatriate 67 billion in cash overseas chuck robbins will be on today at 9:00 a.m. eastern time. >>> netapp swung into a q3 loss due to a tax related charge. adjusted profits did beat forecasts. the fourth quarter outlook was in line with estimates >>> nestle's full-year profit fell 16% the decline was mostly due to cash flow issues at its skin health business. organic sales growth fell short of expectations. the company will not renew its shareholder agreement with l'oreal, though it will remain an investor. >>> shares of airbus are higher today. the planemaker reporting a rise in full-year adjusted profits and free cash flow

insulated that market up by 25 points, so 0.7% we do have data crossing later this week, we have cpi and ppirom china and also the trade balance as well depending on the complexion of those numbers perhaps that's the story to test the global equities picture let's go to my colleague dmaens hunger ford in singapore who has got more depth to the asian markets. why do you think that the chinese equities relatively well insulated from this route? >> well, there are a few factors to consider here, one is on the data front 0.7% on the data side some encouraging news out of china, in fact, on the services pmi that grew at the fastest pace in about six years. that is one encouraging sign when you talk about this economic transition under way in china. but i think a bigger part. story could be any support for the heavyweight names we're tracking in china as well. take a look at some big banks in the neighborhood we're talking gains in the neighborhood of 5%, 4%, here trader speculate funds coming in for funds that could be heavyweight support. think about what's been happenings over the last week. in

there's a fair amount of economic data wednesday, look for retail sales and cpi thursday, jobless claim, ppi, philly fed, industrial production and nahb survey friday, housing starts, import prices and consumer sentiment. as for earning, two dow components in 57 companies in the s&p 500 report this week, that list includes pepsico, under armour, smemet life, kraf soups and coca-cola. >>> joining us now on the cnbc news line, we've got fast money trader steve grasso, he's director of institutional sales at stewart frank doe steve, i've got to tell, we've been riveted with the coverage from the floor and edge elsvery else how do the markets feel, does it make it feel as though the bounce has legs? >> good morning, dom, good morning, contessa. when i look at the balance we had last week, i try to put some sort of a consciousness about every other selloff i've seen. and you know, is this a real recovery is it a real rebound when you saw the selloff and when you saw the sell-back the middle of next week, we sell off perhaps for no reason. and i asked people why did you sell off what's your opinio

ppi rose 4.3% year-on-year cpi rose 1.5%, the lowest level since july 2017. the data supports the picture that china's economy is losing momentum after a stronger than expected 2017 but should also be treated with caution due to distortions caused by the timing of the lunar new year sell breaks next week pboc announced it has released nearly 2 trillion yuan in liquidity to meet cash deman ahead of those holidays. >>> asian stock markets have followed wall street deeply into the red with china's csi notching the worst week since august of 2015 nancy hungerford is in singapore with the conclusion of all the market action. on a relative basis it's striking, asia is getting really badly burned by this global stock market selloff china with a strong domestic dynamic i thought would be relatively insulated, but a different story today. >> despite the strong fundamentals, there's a degree of fear out there, nervousness and going into the lunar new year holiday you talked about it seems investors are not willing to buy in on the dip for fear things could change befor

today with cpi, tomorrow is ppi, the producer price index, how there is inflation creeping in, maybe to the manufacturing level. before it gets to the consumer. if so, which sectors will be jolted or might benefit the most? let's bring in our traders here, these numbers are fast moving. let me also bring in wells fargo chief economist mark vitner. were you concerned or perhaps excited about this inflation number? people have been waiting to see prices move higher since the economy has been good. >> i wasn't unnerved by it, it was shocking to see the number up five tenths. that was more. and the retail sales, i joked, looks like we're going stagon valentine's day. it's a very low altitude stagflation. you know? the thing about the cpi in january a lot of people try to push through price increases at the start of the year. last i checked apparel prices are a bargain -- liz: okay, i need to break in, i need to apologize, we have breaking news coming right now out of florida. mar gate fire rescue, we have live pictures of what appears to be military, could very well be s.w.a.t. teams fro

the weaker reset -- retail sales data as well. .ut the meds in perspective ppi, and of course the moves and the stock market. a lot is happened since. you have to take it into consideration that it is somewhat dated. i don't think the data should successively alter what the fed communication would be anyway. view looking -- listen to officials, it has been consistent in the message. philadelphia fed price today, it is a gradual hiking cycle. year? many heists this >> my view is three hikes this year and three next year. i think they will end up coming a little above now but i think they will probably shift next year given the momentum we are seeing in the data. the growth data has been coming in strong. gdp growth, two point 9% this year. it is a strong number. the rate will fall faster. the question is around inflation. how quickly does inflation breakup and how words does that get officials about the prospect? >> unemployment rate at 3.2% on the backside as well. in light of that number, where will inflation be? thank you for joining us. .> the head of u.s. economics oklahoma passes l

i think we are in fairly good shape in terms of putting ppi behind us. we have put libor behind us. issues with energy groups behind us in terms of the ferc. we have two big issues still around, th mortgage backed securities and around qatar. both of those occurred over a decade ago, and we hope we find resolution in the courts with both of them. anna: widening their investigation and including barclays bank plc, which holds the banking licenses. is there anything you can do to limit the risk to that part of the business, as you wait for the legal process to take its course? ? can continue, we to run the bank as we are running it. stock went up post that charge. credit spreads are tighter, actually. and it's something that happened 10 years ago. we will let the legal system take its due course. we think barclays is fine. anna: in terms of u.s. versus u.k., clearly you have a big business transatlantic. are you looking to move any businesses to the united states, in anticipation of a lighter regulatory environment? jes: the u.s. is about 40% of revenues right now, so we really are a

they have still highlighted ppi costs, at up to £800 million last year.last year. there were still putting aside that amount of money for any compensation claims that would be made in the future. the total now, more than £3.5 billionjust by hsbc. the total now, more than £3.5 billion just by hsbc. 0ver the total now, more than £3.5 billion just by hsbc. over the course of this week, we will hear about banks. that is a hint. thank you very much. women could be putting themselves at risk by changing their diet instead of seeking medical help for a key cancer symptom. persistent bloating is one of the main symptoms of ovarian cancer but a new report found that half of british women would be more likely to buy a probiotic yoghurt instead of visiting their gp to seek advice. britain will not be "plunged into a mad max style—world borrowed from dystopian fiction" after it leaves the eu. that's what the brexit secretary david davis is expected to say in a speech in austria later this morning. he will address business leaders and argue for continued close co—oper

it was mostly ppi, wasn‘t it? content with. it was mostly ppi, wasn't it? in the uk at recycling household waste. john mcguire has been finding out. it‘s bin day in bridgend and on the curbside, a rainbow of refuse. orange bags the cardboard, white for paper, brown for food. there are even bags for nappies — purple — and just two blue bags of non—recyclables collected every other week. residents who transgress risk being fined but locals here seem happy. good, yeah. good for the environment and everything, keeps everyone on the toes. very good, yeah. i've got a child that's eight as well and he finds it quite odd 'cause he automatically chucks everything in the bin butjust getting him used to it. once you‘re used to it, you‘re all right? yeah, it's fine then, yeah. bridgend council is achieving rates other parts of the uk can only dream of, reaching 7a%. bridgend council is achieving rates other parts of the uk dream of, reaching 7a%. the recycling level in wales is 6a% against a uk average of aa%. the pretty coastal village of aberporth is cutting down on

comments this morning will be more important than the ppi numbers because depending on what he does withncy, there is a linkage dollar on aith the dxy basis. the further the dollar drifts, goesore the 10 year yield up and this has to do with good tradable prices and commodity prices projected going forward. it is a weaker dollar pushing the inflation story that is coming into the fray a little bit and i think that is driving the curve. repeating the comments that came out, watch the dollar breaking through the level it hit and then take off. that is interesting. it has not been clear to us what the policy has been on the dollar these days. it seems somewhat cosh victory. normally they say they love a strong dollar. but now they are saying, it is sort of ok, particularly on trade, which the president seems to be fixated on. which way will it go? >> it is an american first policy. i think the currency was part of it and i think it was deliberative it i do not think steve mnuchin made a mistake and i do not think he will back away from it. i think he will talk about it and i think that will

feels like we have shifted to when rick santelli announces the results of the auctions and the cpi, ppi wage data >> yes i think they'll be more careful as we learned last time what looked in the headline to be inflationary pressure and turned out to be the opposite it did not disperse down among the large portion of the working class. >> we just had a discussion about walmart and amazon, and albertsons and rite-aid. looking for inflation in consumer goods, it's tough >> it is competition is growing as you point out, here amazon now announcing that they're going to be in there traditionally if you went in to get a bottle of ibuprofen or something, you would pick up one or two other things in the store. now if you're not going to the store, sales are going to go down, not op nly of ibuprofen bt other things >> they're trying. >> technology stocks are doing fairly well, including amazon in the early going. up 1.4%. even facebook actually up after what has been recent weakness. the stock flat for the year versus many of its so-called -- the f.a.n.g. group, at least you can't even count net

if you look at the consumer, the households, ppi and things like that, we have tax cuts coming in, earningsng up, shouldn't they? is there any reason to believe consumers will stop buying, people will stop earning the way they have been earning? peter: we have seen wages go up, i don't think that's particularly bad. if you look underneath the surface that retail demand for clothing, the article you just had over the weekend on bloomberg, yuki -- you see arele changing -- there totally dependent. household savings are at record lows dependent on the equity market. if that goes down, it will be a quick and rapid change of behavior. alix: let's look at fundamentals . if you take a look at the investment grade and high-yield market, the spread, yes, we did see the spread blowing out, but nowhere near what we saw about two years ago. plus, moody's saying default rates could move down to 2.2%. that doesn't seem to -- seem to me like a world we should be afraid. paul: it looks like a rerun valuation -- it looks like a revaluation of the equity market. if spreads were to blowout a long way, than i

we had a debt deal and the biggest report this week, watch the cpi and the ppi, that's what all the tradersre are going to be focused on valuation risk is lower. the market is considerably cheaper and for everyone who complains it is too expensive, i want it 10% lower, you got your wish two weeks ago, the s&p 500 was trading at 18.5. 20 year-average is 16. it is pricey up there. on friday, we were at 16.6 that's the lowest since the election is it cheap? it is a heck a lot cheaper of two-points lower than a couple of weeks ago you decide whether it is worth buying >> a number of companies tend to under performed in beaten-down area including construction materials and drug and retails and they tend to bounce back in the next six months. he settled out on several different stocks and ups and caterpillar and you see all those stocks a lot of people are trying to look at bottoms and talk about whether these are tradeable balances the dow is at the highest of the day at 350 points. >> again, not a lot of volume. >> that's a great report by bob. >> i like some of those industrials. i just think

thing you, remember, it gives people purchasing power, gives people operating margins, especially with ppiut tomorrow. let's see it's as hot. if not, think about it, you'll see expanding operating margins. this is not that bad when you start to get hyperinflation, velocity of inflation picks up, you have a problem. having a little bit in the equation now is very good and healthy. >> all right obviously we've had a busy news hour we have to move on thank you, all, for the thoughts, andy, good to see you, steve, jack, get back to work as well >>> we have about 22 minutes left in the trading session, dow up 257 points, again, another volatile day when we return, two asset managers following the money, where they see it slowing, and if they prefer growth over value. when we come back. i think that she's a very nice girl... you never got the brakes looked at? oh yeah. no. at cognizant, we're helping today's leading manufacturers make things that think and do automatically. imagine that, a world of new digital products and services all working together for you. can i borrow the car when it's bac

numbers will be very important on the cpi and ppi maybe we'll get that inflation talk back and away fromhe vix talk wouldn't that be nice? >> i think we have a ways to go before that happens. see you tomorrow, bob. we finish with a modest gain after more volatility on lighter volume more earnings, more inflation talk to get you ready for that cpi tomorrow morning on the second hour of the "closing bell" with kelly evans and company. see you tomorrow, kel. >> welcome to the "closing bell," everybody third straight day of gains for the major averages but smaller, more tepid ones and interest rates backed off the dow went out 40 points higher 24640 is your level there. sam magnitude for small cap russell 2000s. nasdaq up about 0.5% and back to 7,000 level to 7,013 we went over 2.9% on the ten-year note earlier this week. still a big range for the dow, nearly 300 points all said and down up 104 at the highs, down 180 at the lows we have cnbc senior markets commentator michael sankchael y welcome, everybody the biggest winner in the dow today was walmart. the biggest decliner was dow dupont o

david: it takes a back to the ppi question.ices, they were sporting for a long time. mean, andese numbers inflation in general? what is china inflation mean for the rest of the world? going forward, chinese inflation numbers will matter most because that is the trigger point to them going as to whethe will see a benchmark rate hike in china. china is still in the middle of typesaign, using multiple of financial regulations coming out. you're seeing the regulations themselves being overhauled in terms of the structural framework. themve not seen implemented yet. markets are antsy about. the conditions are very tight, very tight. to provide a competitive environment for that to take place. , they doaccess markets not like rates being high. if you get a benchmark hike, it pushes everything else. that is what investors are worried about. ofid: the very mention liquidity and markets, it is like leather pants. there is never a perfect time for them. donna, you're going to stay with us. much more analysis on the chinese markets. if yo

what's your tax rate before and after before the tax reform comes in even though we had cpi and ppi int days and we've seen some of the earnings, they're pretty good. there are significant questions that hang over the market. like where are rates going can the economy go above the inflationary cycle and what is -- you heard me say this last time, what is jerry powell and what does he want? >> what does the new fed chair think and what is he looking for. by the way, we had some pros weighing in on the markets today as well. the 2018 outlook looking bright, according to blackrock and goldman. blackrock says it's overweight u.s. stocks on expectations, to your point, that stimulus from tax reform will cause earnings growth to soar goldman saying it expects tax reform to bust earnings. energy and financials expected to lead the way there. preview of what's to come later this year. says things can become trickier with the market needing to take in rising inflation and possible earnings revision. mary ann, where do you shake out on all this? >> that's a lot of input but i think where we beli

in terms of litigation, most are receding and ebbing away, particularly the ppi costs.ing to our correspondent who is at birmingham and has been following the case. tell us more about the sentencing, please? yes, 32 years is how long he will spend in custody but there is a six—year extended license added to that. there was no reaction from matthew falder, there‘s been no reaction throughout today‘s hearing on the previous three days of sentencing. he just sat impassively in the dock, staring ahead. some of us many victims have come to court today, it‘s been difficult for them. some were visibly upset and interiors. judge phillip parker qc described matthew falder as an intranet highwayman, somebody who was cruel and manipulative and want to assume total control of victims and was somebody so much in love with blackmail and being in control that he considered him somebody dangerous and he would have to go to prison for a very long time. there are several types of offending, the first involving victims who he targeted on the website gumtree, often teenagers advertising as

not out of the woods yet, it has had to put money aside to pay compensation over mis—sold ppi insurance challenger founded in 2010. its results revealed that last year it turned a profit for the first time. joining me now is the chairman and founder of metro bank, vernon hill. it has taken you eight years to make a profit, why so long? it was established to completely change and disrupt reddish banking, designed around service and convenience to both the business community and customers. it was beginning to grow on scale and we have had tremendous growth. like every growth business, we see it more in the tech space. we expect have operating losses as you build. why are you growing so quickly at the moment? our business is divided between consumer business and commercial business. in a country where the press sometimes a the brits won't switch banks, 1.2 million people have switched to us. the model is about service, convenience and building fans. we offer their customers a choice, you're not logged in the big four. it is fresh, new, it is open. the customers embrace this idea but the id

if we have an unusual print when it comes to china in the ppi or cpi, with that change the global reflationthat change the global reflation story? >> we will have to watch. you're talking about where to hide when markets take a bit of a couple, it might be counterintuitive but actually one market that tends to ride these things out when you have troubles is the chinese market. valuations are low. there's a strong consensus that china could grow 6.5% this year. we have a bit of a deleveraging story that would take place in q1 of 2018. i would be looking to buy chinese equities in the current market weakness. haidi: the point of view that supports that strategy is that it is a market mostly shielded by global market forces. >> that is absolutely true. sometimes investors see that as a negative. certainly the longer term passes for trying to come better -- path is for china to become more connected with the outside world. but the problem with being shielded is you have a disconnect from the rest of the world and that could cause you to outperform. it is a bit of the glass half-full environment

today we have the chinese ppi numbers, which are pretty good.hina is actually going through a goldilocks period. global growth is good. this is a technically driven issue. there will be a clear out period. at some point, there will be an option for investors to buy into this market. francine: do you buy into this market, maximilian? and a do you need a further correction to then buy into it? maximilian: we continue to be risk on. efore, having followed our advice completely, global equities are moving to equities further and further. yes, this is a buying opportunity. will this materialize within the next couple days, i have no idea. over the next six months or so? i am not sure. francine: maximilian. i'm try to figure out if there is a canary in the coal mine or something you are looking at as a sign to buy. maximilian: what you typically have with canaries in a coal mine would not be this lasting correction. companiestment from and it evaluations in equitiesk for a major deterioration -- over investment from companies equities, orons in a majo

the ppi data we think is pretty reliable. get information out of some of the underlying indicators, but if you think you have insight from china with just adding the main data headlines, you will find that challenging. tom: at blackrock during your meetings on renminbi, canada china managed a weak dollar policy? rupert: the pboc is clearly trying to lean against the price on the currency, but they have limited capacity to do that when dollar is weak. the story at the moment is a weak dollar partially driven by this risk on environment. a lot of that money went into the dollar and is now being used to fund investments elsewhere in the world. they have a limited ability to do that. i would expect them to continue to lean against that and there will be an impact on the economy over the next 18 months. if it stays as strong as it is. it is not appreciating as much against the trade weighted assets. francine: rupert harrison from blackrock stays with us. pick up the latest edition of "bloomberg: business week." ♪ ♪ good morning, e

point people towards the 14th of february, we'll get the next cpi report and then the next day the ppi the market's trading in an absence of information and on conjecture related to anecdote when it comes to the actual inflation data. >> the dow was down 700 points we've just come off that low. >> jim, as you mentioned that, to emphasize steve's point, we also know the december survey could be skewed by what happened with the tax reform. a lot of that was one-time stuff. >> it's not just one or two surveys but ate litany of sur y surve surveys. to steve's point, steve, you're absolutely right the market is fearing inflation. it feared inflation a year ago january of 2017. and it dissipated and we had a giant rally. if we do get that inflation, it's afraid -- the central bank, the fed included, are going to have to pull back harder that's going to be the question going forward. we're worried, we being the collective market, does it materialize? we got one bad number last week. markets are forward looking. they're looking into the spring and summer and thinking we'll see a lot more infla

lots of claims, it used to do ppi work now do transfer to time—share and other stuff.being sold...” want to bring in robert ash, listening to our conversation. were you subjected to a hot housing technique to buy a time—share? is that what it is called? what housing? hot rooming? in europe, yes. explain what that is for our viewers. i had already bought two time—shares in america. in florida. excuse me. i got igota i got a totally different experience when i signed up to buy one in spain. i got that hothouse treatment. i was in the office of just over six hours. having facts pounded at me. i definitely was looking for another time—share. because i have three grandchildren, wanted to give them one each as part of a legacy. they rounded on this. they hammered home that i was going to get a special deal, don't worry about finance, we will get finance for you. everything was hunky—dory as far as i was concerned when i came out. after six hours. i was ready to sign my life away, by the time i came out of the office. because you are exhausted by the whole thing? yeah. i were

>> you have the cpi/ppi. >> hotter than expected. >> did you see paulson's stuff he brought up the "sally >> i don't think so. >>> let's get you caught up with some of today's top stories. walmart earnings came out and they did fall short of what the street was expecting revenue and same store sales beat the street. the retailer is guiding full year earnings per share at 4.70 to $5 a share. the consensus was at $5. you can see how that's impacting the dow stock. down 6.5%. trading at 97.9$97.90 home depot topping estimates on all of the major metrics and offering upbeat earnings the retailer now has a dividend that's yielding 2.2% and that stock had been higher as we've been checking on it through the morning. qualcomm in the meantime is increasing its takeover bid for nxp semiconductors that's up from their original offer for 110. all of this comes as qualcomm is being pursued by broadcom in a proposed $120 billion deal broadcom has said that its offer was contingent on qualcomm buying nxp or terminating the deal qualcomm shares down by 2.7% broadcom is down by 3/4 of 1 percentage po

substantial higher inflation right now you've got cpi running basically a full percentage point below he the ppifor corporations costs going up faster than able to to pass them own i think we need to see where that flushes out but right now an input story so i think the market bond market may have overing reacted to inflation because of remains in the pipeline, really not as big a problem for the fed. this has been the issue so far is that we have seen these increases in pi.s pi.si inflation that have not been able to really translate through i don't see that dynamic changing. >> just wondering about if you see hope on productivity embyroing it has been terrible, more investment i think because of the tax cut, this is obviously a way that companies could pay people more without being inflationary, because people are producing more stuff. >> yeah, doesn't seem to me like you are getting much evidence of that i mean i think what we're seeing right now, again, is -- you got companies announcing that they are going to use this money for share apply bacbuybacks mor increase, so i guess on productivit

maria: i meanings ppi earlier. >> producer price index, out thus this is telling us that the higher increasescash register when you check out supermarket impacting you why market is failing out of bed. >> although i am still going to wave caution flab numbers for january exactly the same as for december. so we're not seeing, inflation rising we're just ahead where have we were from expectations perspective. dagen: quick i want to point out, something, about -- because i keep bringing up, the -- the unprecedented stimulus and monetary policy we saw from federalizing over last decade, federal reserve and central banks, the central problem is that this fee of money cheap easy money pushed into these the economy never benefited average folks in this country didn't see wage he increases instead it was asset inflation. maria: yes. >> stock market. >> junk bonds real estate. >> so the average person in this country could still be okay if we have an economy that is on stable footing higher wage increases so long as people are careful even if you have these asset bubbles. >> go ahead. >> going to say

morning and they are good but what is interesting is the fact that they are still setting aside money for ppie of strength. yesterday morning i was at a friend‘s funeral and that was tough but again i‘m surrounded by my friends and by family and the community and we are all getting through it day by day. you say you have already been to a friend‘s funeral as well as bass amongst many of the other students is there feeling at the moment that you need to channel this energy that you have for change at the moment, is that why there is such a pace about the way you‘re going about your business at the moment? we want to try and get as much done as we can while the focus is still on what has happened. if we take our time to grieve quietly on our own, for a few weeks, then by the time we‘re ready to come back out and try and make a change, nobody is going to care. so i feel like we have really, so is our grief into anger and into a need to make change, and that‘s what has been so phenomenal about the movement has a whole. we are waking up to the news that president trump has signed this order to ban